The Following Data Pertain to an Investment in Equipment $$\begin{array} { |l | l |} \hline \text { Life of the Project } & 7 \text { years } \\\hline\end{array}$$

question 143

Multiple Choice

The following data pertain to an investment in equipment:
$\begin{array}{|l|r|}\hline \text { Investment in the Project } & \$ 10,000 \\\hline \text { Net Annual Cash Inflows } & \$ 2,400 \\\hline \text { Working Capital Required } & \$ 5,000 \\\hline \text { Salvage Value of the Equipment } & \$ 600 \\\hline\end{array}$
$$\begin{array} { |l | l |} \hline \text { Life of the Project } & 7 \text { years } \\\hline\end{array}$$
At the completion of the project,the working capital will be released for use elsewhere.What is the net present value of the project,using a discount rate of 9%? (Ignore income taxes in this problem.) (Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

• A) $142.
• B) $126.
• C) ($1,729).
• D) ($517).

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